An Introduction To Planogram Merchandising

May 9, 2012

The planogram, or planned visual diagram of products, is a drawing or visual diagram that details the proper positions of every product sold within a retail department or store. They are essentially schematics for merchandise departments; they show where things should go within a store and even the specific details in terms of shelves and aisles in which individual items should be placed. A good product diagram will also depict the number of identical products that can be placed on a shelf that faces the customer.

The extent to which a planogram is drawn will vary depending on the software used in the creation of the visual diagram, as well as the size of the store and the specific needs of the retail department for which the diagram was created. In some cases, product visual diagrams may not be any more complicated than pictures of preset sections; in other cases, they may go into far more detail and even show shelf notches and numbered peg holes that specify exactly where each item should be placed.

Planograms are typically created by specialists in retail merchandising Toronto and specialists across the World when they are made for larger retailers and huge box stores. Alternatively, the larger chains are likely to have their own hired staff for the express creation of customized product diagrams. Since the majority of existing software for creating planned visual diagrams is expensive, many small or independent retailers choose to use paper and pencil or word processors to figure out the best arrangements for their shelf layouts.

In today’s hyper competitive market environment, it is more important than ever for both vendors and distributors to have accurate and effective ways of displaying and selling their products. The average shopper is bombarded and overwhelmed by a dizzying array of choices for just about anything he or she could ever want to buy, and most people tend to pick the first things they see when shopping for unfamiliar materials.

As a result, it pays to pay attention to layout. Point of sale displays are crucial in the industry, as are well designed and implemented planned visual diagrams and other marketing aids that suppliers will provide to their retailers to optimize their chances of converting sales.

Two of the most basic reasons why retailers should seriously consider the implementation of planogram of their products are to optimize sales and to optimize product placement. However, there are a number of other benefits to the use of such visual diagrams.

Perhaps the most obvious one is that every square foot of space within a retail environment costs money, as it represents rented or purchased property, and giving it a selling potential gives the owner of the store a chance to recoup some of that money.

There is also the aesthetic benefit; just as a made bed is more appealing to look at than a messy one, so is an orderly and cleanly stocked shelf in comparison to a messy and disorganized one. It also makes things easier for staff, as products that are running low can be spotted and correctly replenished sooner.

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Amazing where value can be added, but we are a fast moving society and their can be great value in having a consistent layout of products from store to store (specifically for big-box stores that have multiple locations and enormous selection).

It is similar to the consistent service you come to expect at a fast food chain. You go in knowing it will be quick and cheap and it will be the same burger whether you go to a location in Salmon Arm or Kelowna (BC). That consistency adds enormous value.

Of course for smaller independent stores, they can brand themselves differently based on the Niche, and perhaps arrange for those who like to browse and discover.